Gul Ahmed Textile Mills Closes Export Apparel Business
Gul Ahmed Textile Mills has decided to close business operations of the export apparel segment due to sustained margin pressure.
In a notice to Stock Exchange, the company management said that the Board of Directors of Gul Ahmed Textile Mills Limited has decided to discontinue the business operations of the Company’s Export Apparel Segment.Gul Ahmed obtains stay order against gas disconnection
In compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of the Pakistan Stock Exchange Rule Book, we wish to inform you of the following material information that the Board of Directors of Gul Ahmed Textile Mills Limited, in its meeting held on 29-Sep-2025 has resolved to discontinue the business operations of the Company’s Export Apparel Segment. This decision has been taken following a comprehensive strategic review of the segment’s performance and future outlook.
The Export Apparel Segment, being highly labor-intensive, has faced sustained margin pressures due to a combination of internal and external factors. Persistent challenges include intense regional competition, a stronger exchange rate, recent government policy changes (such as the increase in advance turnover tax), rising costs of nominated fabrics, and elevated energy tariffs. Collectively, these factors have significantly undermined the segment’s cost structure and profitability, resulting in continued operational losses.
The strategic closure is expected to positively impact the Company by reducing ongoing losses, lowering borrowing levels, and improving cash flow management. This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas.
It is clarified that this decision relates solely to the Export Apparel Segment. The Company will continue its operations in other principal segments, including Home Textiles, Spinning, and Weaving, which remain integral to the Company’s long-term growth strategy,” management said.
